ServiceNow delivered adjusted EPS of $0.92 for Q4, outpacing consensus estimates of $0.88 and the Zacks Consensus of $0.87. This represents a 26% year-over-year improvement from the $0.73 reported in the same period last year and a 5.8% earnings surprise, underscoring the company’s ability to outperform expectations consistently.

Quarterly revenue reached $3.56 billion, beating the $3.52 billion Street estimate and surpassing last year’s $2.96 billion by 20%. Subscription revenues continue to be the primary growth driver, and management forecasts subscription revenue growth for fiscal 2026 above current consensus, supported by expanded product offerings and cross-sell opportunities within its 7,200 enterprise–customer base.

ServiceNow has lined up several acquisitions and alliances to bolster its AI and security capabilities. Notably, planned purchases of Armis and Veza are expected to enhance device-security and data-access controls respectively, while multi-year agreements with Anthropic and OpenAI integrate Claude and GPT models into the Now Platform. These moves aim to accelerate product innovation and deepen customer engagement through AI-native workflows.

The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.21 and a current ratio of 1.06. Valuation metrics reflect strong growth expectations: a P/E ratio of 77.9, a P/S of 10.6 and an EV/S of 10.6. Following the earnings release, shares dipped more than 5%, but a newly authorized $5 billion share repurchase program underscores management’s confidence in long-term value creation.